Equivalence will be one way for the UK to avoid the Brexit
cliff edge including in the clearing sector. This has become
even more important given ongoing concerns that the UK and EU
will be unable to reach a deal in time, and that the EU is yet
to come up with a reciprocal scheme to the temporary
recognition regime (TRR) proposed by the Bank of England.
"The equivalence model is the best outcome so that both
sides are aligned," said a spokesperson at a UK-based clearing
house. "The UK needs independence rather than simply being a
rule taker, whereas on the other hand regulatory alignment is
necessary; equivalence best complements this balance."
European chief negotiator Michel Barnier said the deadline
for a deal has been extended to the end of November at the very
latest, but concerns are mounting that no deal will be agreed